IndividualsSchedule X-SingleThe tax is$11.000Chuck, a single taxpayer, earns $79,200 in taxable income and taxable income in over. But not over$15,000 in interest from an investment in City of Heflin bonds.(Use the U.S. tax rate schedule.)10% of taxable income$ 44,725 $1,100 plus 12% of the excess over $11,000$95,375 $5,147 plus 22% of the excess over $44,725$182,100 $16,290 plus 24% of the excess over $95,375$231,250 $37,104 plus 32% of the excess over $152.100$578,125 $52,832 plus 35% of the excess over $231,250| $174,258.25 plus 37% of the excess over $578,12Required:a. If Chuck earns an additional $40,000 of taxable income,what is his marginal tax rate on this income?b. What is his marginal rate if, instead, he had $40,000 ofadditional deductions?Note: For all requirements, do not round intermediatecalculations. Round percentage answers to 2 decimalplaces.a. Marginal tax rateb. Marginal tax rate24.00 %22.00 %$ 11,000$ 44,725$ 95,375$182,100$231.250$578,125The tax it:10% of taxable incomeSchedule Y-1-Married Filing Jointly or Qualifying surviving spouseIf taxable income is over: But not over:$$22,000$ 22,000$89,450 $2,200 plus 12% of the excess over $22,000$89,450$190,750 $10,294 plus 22% of the excess over $89,450$ 190,750$364,200 $32,580 plus 24% of the excess over $190,750$364,200$462,500 $74,208 plus 32% of the excess over $364,200$462,500$693,750 $105,664 plus 35% of the excess over $462,500$693,750| $186,601.5 plus 37% of the excess over $693,750Schedule Z-Head of HouseholdIf taxable income is over: But not over:$ 0$ 15,700$ 15,700$59,850$ 59,850$ 95,350$95.350$182,100$182,100$231,250| $575,100$ 231,250$578,100The tax iss$95.375$182,100$ 231.250$ 346,87510% of taxable income$1,570 plus 12% of the excess over $15.700$6,868 plus 22% of the excess over $59.350$14,673 plus 24% of the excess over $95,350$35,498 plus 32% of the excess over $1$2,100$51,226 plus 35% of the excess over $231,250$172,623.5 plus 37% of the excess over $578,10010% of taxable incomeSchedule Y-2-Married Filing SeparatelyIf taxable income is over: But not over:$ 0$11,000$ 11,000$ 44,725$ 44,725$95,375$182,100 $16,290 plus 24% of the excess over $95,375$231,250 $37,104 plus 32% of the excess over $1$2,100$52,832 plus 35% of the excess over $231,250$93,300.75 plus 37% of the excess over $346,875$1,100 plus 12% of the excess over $11,000$5,147 plus 22% of the excess over $44,725$346,875The tax is

Income earned that is subjected to tax is used to compute the tax liability. It is the amount of tax…

Chuck, a single taxpayer, earns $79,200 in taxable income and $15,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. f taxable income is over: But not over $11.000 $ 95,375 $ 182,100 $ 231,250 $ 378,125 The tax is: $11,000 10% of taxable income $ 44,725 $1,100 plus 12% of the excess over $11.000 $95.375 $5,147 plus 22% of the excess over $44,725 $182,100 $16,290 plus 24% of the excess over $95,375 $231.250 $37,104 plus 32% of the excess over $152,100 | $578,125 552.852 plus 35% of the excess over $231.250 $174.238.25 plus 37% of the excess over $573,12 The tax is: Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: $0 $ 22.000 $89.450 $ 190,750 $364,200 $462.500 $ 693,750 $15.700 $ 59,850 $95.350 $1$2,100 $ 231,250 $ 578,100 10% of taxable income $$9.450 $2,200 plus 12% of the excess over $22,000 $190,750 | $10,294 plus 22% of the excess over $89,450 $364.200 $32,580 plus 24% of the excess over $190,750 $462.500 $74,208 plus 32% of the excess over $364,200 $693,750 $105,664 plus 35% of the excess over $462,500 | $186,601.5 plus 37% of the excess over $693,750 Schedule Z-Head of Household If taxable income in over: But not over: The tax is $15.700 10% of taxable income $59.950 $1,570 plus 12% of the excess over $15,700 $95.350 $6.868 plus 22% of the excess over $59.850 $182,10 | $14,678 plus 24% of the excess over $93,350 $ 231,250 $35,498 plus 32% of the excess over $182,100 | $575,100 $51,226 plus 35% of the excess over $231,250 || 5172,623.5 plus 37% of the excess over $578,100

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transactions

Section: Chapter Questions

Problem 30P